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Monday, 22 October 2012

MEETING AT LUCKNOW- SELECTION OF OFFICE BEARERS


To

The Hon. Chief General Manager
State Bank of India
Local Head Office
Moti Mahal Marg
Lucknow
                                                                                                      Date: 22.10.2012
Dear Sir,

ALTERNATE CHANNEL
SBI B.C. CHANNEL

First of all, we the Business Correspondents of State Bank of India are thankful to Government of India, Reserve Bank of India, and Top Executives of State Bank of India, who have provided us the chance to serve, that population of the country, which was deprived of the banking facilities for last long time and thus provided us employment also near our dwelling place.

In this context, we have to submit the under noted some of our problems for better running of this channel.

i)                    The maximum limit of per day transaction of Rs. 10000/- may be increased to Rs. 20000/-.
ii)                   The maximum balance in accounts opened at Business Correspondents’ Kiosks may be increased from the present limit of Rs. 50000/- to Rs. 200000/-.
iii)                 We are handling cash in deposits but not getting any commission for deposits. This may be considered favorably.
iv)                 Our request is to pay commission promptly and with the details of head-wise commission paid to us viz. the commission paid on account opening, generation of Identity Cards, etc. may be shown separately.
v)                  We are not aware whether the commission shown in the system is after deduction of T.D.S. or not, as some branches are deducting T.D.S. on payment of commission.
vi)        Bank may allow issue of pass books to all customers, as our clientele is 100% backward and they more believe in pass books rather than printing of transaction slips. Moreover, the software of State Bank of India (Kiosk Banking) also shows evidence of issuing pass books.













                                                                        ::2::



vii)        Though, we all are working for the Bank, we are not aware of the Bank’s instructions relating to the Channel. We, therefore, request the Bank to circulate at least the instructions which relate to Business Correspondents, for better performance and pursuing the matter with the Bank’s officials.
viii)              The rate of commission presently being paid is running for last 5 years. This may be increased rationally.
ix)                 The transaction limit per annum in an account is allowed up to Rs.200000/- only, which may be increased to Rs.500000/-.

Thanking you,
Yours faithfully,



(V. K. Singh)
President
SBI BC (INDIVIDUAL) ASSOCIATION
LUCKNOW CIRCLE


Mobile: 09307415988























To

The Hon. Chief General Manager
Reserve Bank of India
Reserve Bank Building
Gomti Nagar
Lucknow
                                                                                                      Date: 22.10.2012
Dear Sir,

ALTERNATE CHANNEL
SBI B.C. CHANNEL

First of all, we the Business Correspondents of State Bank of India are thankful to Government of India, Reserve Bank of India, and Top Executives of State Bank of India, who have provided us the chance to serve, that population of the country, which was deprived of the banking facilities for last long time and thus provided us employment also near our dwelling place.

In this context, we have to submit the under noted some of our problems for better running of this channel.

i)          The maximum limit of per day transaction of Rs. 10000/- may be increased to Rs. 20000/-.
ii)                   The maximum balance in accounts opened at Business Correspondents’ Kiosks may be increased from the present limit of Rs. 50000/- to Rs. 200000/-.
iii)                 We are handling cash in deposits but not getting any commission for deposits. This may be considered favorably.
iv)                 Our request is to pay commission promptly and with the details of head-wise commission paid to us viz. the commission paid on account opening, generation of Identity Cards, etc. may be shown separately.
v)                  We are not aware whether the commission shown in the system is after deduction of T.D.S. or not, as some branches are deducting T.D.S. on payment of commission.
vi)                 Bank may allow issue of pass books to all customers, as our clientele is 100% backward and they more believe in pass books rather than printing of transaction slips. Moreover, the software of State Bank of India (Kiosk Banking) also shows evidence of issuing pass books.











                                                      ::2::


vii)               Though, we all are working for the Bank, we are not aware of the Bank’s instructions relating to the Channel. We, therefore, request the Bank to circulate at least the instructions which relate to Business Correspondents, for better performance and pursuing the matter with the Bank’s officials.
viii)              The rate of commission presently being paid is running for last 5 years. This may be increased rationally.
ix)                 The transaction limit per annum in an account is allowed up to Rs.200000/- only, which may be increased to Rs.500000/-.

Thanking you,
Yours faithfully,



(V. K. Singh)
President
SBI BC (INDIVIDUAL) ASSOCIATION
LUCKNOW CIRCLE


Mobile: 09307415988


























To

The Hon. Finance Minister
Ministry of Finance
Government of India
New Deldi-110001.
                                                                                                      Date: 22.10.2012
Dear Sir,

ALTERNATE CHANNEL
SBI B.C. CHANNEL

First of all, we the Business Correspondents of State Bank of India are thankful to Government of India, Reserve Bank of India, and Top Executives of State Bank of India, who have provided us the chance to serve, that population of the country, which was deprived of the banking facilities for last long time and thus provided us employment also near our dwelling place.

In this context, we have to submit the under noted some of our problems for better running of this channel.

i)                    The maximum limit of per day transaction of Rs. 10000/- may be increased to Rs. 20000/-.
ii)                   The maximum balance in accounts opened at Business Correspondents’ Kiosks may be increased from the present limit of Rs. 50000/- to Rs. 200000/-.
iii)                 We are handling cash in deposits but not getting any commission for deposits. This may be considered favorably.
iv)                 Our request is to pay commission promptly and with the details of head-wise commission paid to us viz. the commission paid on account opening, generation of Identity Cards, etc. may be shown separately.
v)                  We are not aware whether the commission shown in the system is after deduction of T.D.S. or not, as some branches are deducting T.D.S. on payment of commission.
vi)                 Bank may allow issue of pass books to all customers, as our clientele is 100% backward and they more believe in pass books rather than printing of transaction slips. Moreover, the software of State Bank of India (Kiosk Banking) also shows evidence of issuing pass books.











                                                      ::2::


vii)               Though, we all are working for the Bank, we are not aware of the Bank’s instructions relating to the Channel. We, therefore, request the Bank to circulate at least the instructions which relate to Business Correspondents, for better performance and pursuing the matter with the Bank’s officials.
viii)              The rate of commission presently being paid is running for last 5 years. This may be increased rationally.
ix)                 The transaction limit per annum in an account is allowed up to Rs.200000/- only, which may be increased to Rs.500000/-.

Thanking you,
Yours faithfully,



(V. K. Singh)
President
SBI BC (INDIVIDUAL) ASSOCIATION
LUCKNOW CIRCLE


Mobile: 09307415988


Thursday, 19 April 2012

A REPORT ON WORKING / DIFFICULTIES OF BUSINESS CORRESPONDENTS ENGAGED BY STATE BANK OF INDIA


It is furnished hereunder the difficulties and problems faced by the business correspondents engaged by State Bank of India, in a summarised form.

1. Cash Management

            As the scheme of the Govt. is mainly to cover the rural area under financial inclusion, most of the customer service centres have been opened in remote area of the country, which are linked to a Branch ranging from 7 to 20 kms. far from C.S.Ps. The cash management on the part of the business correspondents has become difficult, specially with a view to serve the customers in time and security of cash etc. The Link Branch staff may and may not cooperate to withdraw cash from there and fetch it to C.S.P. in time.

2. Commission is on very low side

            The structure of commission being paid by state bank of India is as under:-
            On deposits : Nil
            “       “          : Annual Average Balance : 0.5% (annual)
            “      “           : 50 paise per account per month (Maintenance)
On withdrawal : 0.5%  (Min. Re. 1/- Max Rs. 12/-)
(If commission is below Rs. 2000/- it will be top up to Rs.2000/- only)
            It is apparent that amount of commission arrives at not exceeding to Rs. 3000 to 4000 per month approximately, while recurring expenses of B.C. is atleast Rs. . 4000/- (not included personal expenses, entertainment expenses to customers, conveyance expenses etc.). Thus in some cases business correspondents are losing from their own pocket every month, and are awaiting for enhancement in the model of commission structure.

On remittance  :  2/5 : 3/5 ratio (Bank : B.C.)
On loans           : 0.75% to 1% conditional (however it depends totally on link Branch whether to sanction loan or not: thus it is equal to zero for B.C.)
On Account opening : Rs. 20/- per account opened.

3. Details of commission paid not known- whether it is authentic or not

            The Bank is not furnishing / delivering any report to B.C. to enable them to know as to what is amount of total business fetch by them. Thus at the time of payment of commission on average annual deposit, its correctness cannot be confirmed by B.C. Similar is the case in respect of monthly commission being paid. The list is displayed on the site of “SBI Times” which is accessible to Branch Manager only, and the chances of misappropriation/ wrong calculation / inadvertence cannot be set aside.



4. No platform for B.C. to get remedy for grievances

            There is no proper platform on Bank’s side which may assist B.C. to get remedy for their problems. The Branch staff treat the B.C. as if they are their rival and snatcher of their bread. Neither they are doing their work nor allowing B.C. to work; the crowd in Bank’s regular branches are its evidence. While the maximum transaction limit of  CSP in each account is subject to not exceeding Rs. 10000/-, why not bank divert their customers to CSP who remit money upto Rs. 10000/-.

5. Provision of Pass Book not made available

            Only Identity Cards are provided to the customers and not pass books, which is very much essential for customer. At any point of time, customer wants to know the balance, if pass book is not with him, how he can know his balance. The printed copy of the last transaction or all previous transactions to be kept by him for ever is not feasible at all. Moreover, in the print copy of transaction, net balance does not show.
It is costlier to B.C. to provide them printout of their transaction rather than entering in his pass book. While in Bank’s regular branches, pass book are being given, why do Bank not apply the same rule to their regular branches.

6. Balance / Statement of customer’s account not available without finger impression

            In lack of the above, B.Cs. as well as customers also are feeling much difficulty, because the system is under CORE BANKING, the customers’ relatives remit money from outside, and the customers want to know whether the money has been credited to their account. We only cut a sorry figure in saying that it is not possible without physical presence and giving finger print verification.

7. Erroneous entries cannot be adjusted

            Often, by clerical mistake which is human, some erroneous entries take place, which we cannot reverse. The link Branch may or may not adjust it because it is under their discretion. Thus there is always a chancee for loss to B.C.

8. Security Arrangements

            No security arrangements have been made available on behalf of Bank. Transactions are ranging upto 100000 to 200000 in an average per day. It is risky in regard with loss of money and life.

9. Limitations

            There are many limitations which is affecting to B.C.’s business.
i)                    Limit of Annual income of customer : Not exceeding Rs.60000/-
ii)                  Limit of total deposit in an account          : Not exceeding Rs.50000/-
iii)                Limit of total transaction annual               : 200000
iv)                Limit on commission- on payments          :12/- maximum( i.e. if payment is for Rs.2400/- or upto 10000/- only Rs.12/- is admissible. Why one will take interest to pay a heavy amount like Rs.10000/- at a stretch). Moreover, it is ridiculous as to a customer earning upto Rs.60000 alongwith all liabilities can save and deposit a good deal of amount, which matters to get commission to  B.C. as average annual deposits.

10. Commission structure on remittances- irrational

            The rate of exchange on remittances is @ Rs. 2/- per hundred, minimum Rs. 25/- Maximum Rs..100/- which is too high in comparison to the rate of regular Bank’s Branches which is Rs. 2/- per thousand; this is ten times high, and that too for the people who have been brought under financial inclusion who are poor and deprived of. This is irrational. This only denotes that the Bank wants to curb the business of B.Cs. and nothing else, because they seem to be competitor of regular branches. This is a negative view adopted by Bank, rather it should be at par and the regular branches may improve their customer service and fetch their business in a healthy manner.

11. Finger Print Failure

Sometimes, the customers who are villagers and labourers want to withdraw amount from their account but do not succeed because their finger print do not resemble to the recorded one in the concerned account. The reason behind it, is, that labourers or farmers who work in their fields or work in dust, alkali, cement etc., their finger impressions are attrite and do not match, thus payment is denied / incomplete. There is no option left with us to do any good for them except for return them. This is against the Bank’s norms and mandate that a customer is denied payment without any reasonable cause.

All these matters be dealt with immediately too serve the people in remote and to give a success to the Govt. scheme.

D K SINGH
   B C
Mob, 9838222430
Email : ghayalfaizabadi@gmail.com

Sunday, 24 April 2011

BUSINESS CORRESPONDENTS ENGAGED BY SBI


AN EXHAUSTIVE REPORT ON BUSINESS CORRESPONDENTS ENGAGED BY STATE BANK OF INDIA

The Business Correspondents engaged by State Bank of India, hereby report the grievances / hardships / hindrances faced by them in regard to conducting kiosk banking.

1.     The prospect customers coming even from rural area want to open joint account with their kith and kins while there is no provision in the present software. Resultantly, some of them are not interested to open accounts, which result a loss primarily to B.Cs. and ultimately to Bank. This provision may be made henceforth.

2.     At the time of opening account, if some erroneous feeding has been made, how it will be corrected and who will correct it.

3.     As per Bank instructions which are prevalent at other branches of SBI, any minor aged 10 years old can open a SB A/c and operate it, but in the present Kiosk Banking system, it is not possible in case of minor less than 18 years old. Thus, many students studying in high school or intermediate colleges expecting their scholarships have been made incapable to open account in the Kiosk Banking system.

4.     Issuance of pass book has not been allowed in the present Kiosk Banking System as per RBO Officers verbal instructions. The prospect customers of villages have no faith and do not rely on the Kiosk Banking System. They raise many questions about this and logics as to why other branches of SBI are issuing pass book and here it is not so.
While in the Kiosk Banking, there is an option to choose whether, the nominee’s name will appear on the pass book or not. It reveals that there is a provision of issuing pass book to the customers. Please arrange to this facility so as we can issue pass books to them.
                                               
5.     Stationery viz. account opening forms, etc. are not being supplied by RBO sufficiently. For it, we have to make a run often to RBO causing loss of money, time and toil. The officers at RBO say that they would be able to supply the forms etc. as and when it will be made available by LHO and they also advise  to use the photocopy of account opening forms. This perchance is not as per Bank’s instant instructions and also it costs / affects  revenue.

6.     B.Cs. settlement account (current account) and Commission account (Savings Bank Account) balance enquiry may be made visible to us. Because for this purpose, we will have to go to our link branch often, this is a hindrance in our working.

7.     Balance enquiry of Kiosk Accounts and Non-kiosk accounts (without finger print) may be made available in the Kiosk Banking software, because –

a)      In case of cash deposit at Kiosk Banking Point, into   Non-kiosk accounts, no balance appears in the deposit slip generated by Kiosk and only amount deposited reflects there, while the customer wants to know / see / confirm the balance of the account in which amount has been deposited. Moreover, it is not sure whether the amount has been deposited or not.

b)      In case of Kiosk accounts- If a person deposits any amount from other branch to kiosk accounts, and wants to confirm telephonically or inditingly, KO are at loss to tell him the correct balance / position. This provision may be made for kiosk banking in the interest of public as well as them, and the Bank. Otherwise, in case of the amount being strayed, legal problems may arise in future.





8.     At-least to computers connected with each one (networking)-

The prospect customers visit to the CSP at the same time for account opening, cash deposit / withdrawal etc. In such a position, only one type of transaction i.e. either account opening or deposit / withdrawal / balance enquiry is possible, resulting a heavy crowd. This will forfeit the motive of the kiosk banking.          This can be avoided by connecting two computers working simultaneously. This provision may be made.
    
9.     Cash remittance in current account is not made possible in kiosk banking at present. I may be got rectified at the appropriate level.

10.                        Training/ circular instructions etc.-
Training regarding kiosk banking may be provided to the B.Cs. so that any type of errors and omissions can be avoided. The circulars instructions issued by Bank may be provided to B.Cs. directly by way of email etc. to avoid delay. However, no circular instructions are being provided to them on a regular basis. The provision thereof will ultimately be in the interest of Bank.

11.                        The Branches as well as RBO are not co-operating us to the level to which they are expected. The link branches take a lot of time e.g. 15 to 30 days to authorize opening of accounts created by the CSPs.We propose that we should be linked to such a channel who immediately take up their matters. Their names, address, phone and email address may be made available to them.

12.                        Insurance of cash holding amount and cash in-transit amount may be arranged at Bank level because the officials of companies under General Insurance Company advise them that there is no provision of insurance of cash handling conducted by individuals. This is necessary to be done by Bank and required fees for insurance may be recovered from them if applicable.





COMMISSION / EXPENSES AVAILABLE TO /           INCURRED BY BUSINESS CORRESPONDENTS

     Here is illustration of the commission admissible to B.Cs. as per extant instructions and expenses incurred by them.

A)   Monthly income / Commission admissible to B.Cs

Current instructions by SBI   Commission-       2000/- p.m.
A/c maintenance @ o.50 paisa per account

Per month supposing 2000 accounts
Maintained                                                 -        1000/- p.m.

Annual mtce. Due to limit on customers           
Account arrives at equal to                       -        nil
                                      TOTAL               =       3000/- P.M.

B)  MONTHLY EXPENSES INCURRED BY B.CS.

Room rent                                                  -        1000/- p.m.
Electricity                                                  -        1000/- p.m.
Internet Broad band BSNL rent                 -        3300/- p.m.
Stationery / printing                                  -        1000/- p.m.
Employee (Substitute min. one)               -        3600/- p.m.
(@ Minimum MNREGA)
Sweeper part time                                      -        1500/- p.m.
Depreciation on assets **                          -        2350/- p.m.
Interest on fund / cash invested ***                   -        790/- p.m.
                                                                                                                                                                                       __________
          TOTAL                                            -        15490/- p.m.
                                                                            



** Furniture /counter/table etc. -     70000/-
Wiring                                    -        10000/-
Computer/printer/web cam    -        31000/-
Finger print scanner               -        2600/-
Fans 2                                     -        2000/-
Inverter / battery                     -        25000/-
                                                          ________
                                                          1, 40,600/-
                                                          ________
**Depreciation @ 20%                        2350/-                                                                                            ________
*** Cash deposit in C.A.        -        50,000/-
       Cash in hand                    -        50,000/-
                                                          ________
                                                        1, 00,000/-
                                                          ________
***Interest on above @ 9.5%                    790/- p.m.
                                                          ________




LOSS SUFFERED BY B.C. AS PER ABOVE (A – B) =
Rs. 12490/- p.m.

In the above illustration the expenses have been shown at the lowest while the remuneration of B.C. has not been taken into account. This begets a heavy loss to B.C. and resultantly they will have to shut down their outlets. Moreover, in the case of new entrants also, they will face the same financial hurdle and they also will not succeed. There is no remedy except for increasing the commission to a level taking in view the above facts so that this may get success and Bank may also earn revenue from it.

In addition, the Bank and B.Cs. have entered into an agreement in which reasonable commission bases on deposits and withdrawals was devised which was 0.5%, but later the Bank has revised the commission and capped the ceilings of balances etc. resulting the B.C.s to starve. This is felt by B.C.s as a deceit. At this stage while they have invested about 200000/- it is not possible to get rid of such activity.

The above suggestions are from the grass root level from the B.Cs and customers and are ultimately in the interest of Bank.
Hence, it may be taken up sympathetically and rationally.

SBI BUSINESS CORRESPONDENTS